A licensee is prohibited from which of the following actions?

The prohibition against instructing a borrower to sign mortgage documents containing blanks is rooted in the need for clarity and legal integrity in loan transactions. Signing a document with blanks can lead to serious issues, such as fraud or the misuse of the signed agreement, as borrowers may not be fully aware of the terms they are agreeing to. This practice does not align with industry standards that promote transparency and protect consumers.

In contrast, providing financial advice on loan types and advising borrowers on their options can be part of the mortgage loan originator's role, as these activities are fundamental to helping borrowers make informed decisions. Collecting information from borrowers is also a typical and necessary action for loan processing and underwriting. Therefore, the prohibition specifically highlights the critical importance of ensuring that all documents are complete and explicit before a borrower commits to them, safeguarding both the borrower and the lender.